Bear Stearns and Wachovia Securities are collecting commitments for $90 million of bank debt backing Federal Information Technology Systems' $117.2 million acquisition of Sensor Systems. Kelso & Co. owns Federal IT and is putting $47.6 million of equity into the latest transaction. A banker said commitments were coming in, but levels could not be determined.
Sensor develops image visualization and analysis for remote sensing and medical imaging. Federal IT is an information technology and business provider to the intelligence and defense sectors. Its clients are predominantly within the U.S. Department of Defense and intelligence agencies contracting sector.
AIS Acquisition Corp., a 100% subsidiary of Federal IT is the borrower, with Federal IT as the guarantor, according to Moody's Investors Service. A bank meeting was held last Tuesday (LMW, 4/4). The debt is split into an $80 million term loan and a $10 million revolver, with LIBOR plus 3% pricing on the term loan. The bank debt comprises all the debt structure and is rated B2.